Pakistan’s rice exports fall significantly due to Indian rice dumping in international markets
Other countries have also been affected due to Indian rice dumping.
Pakistan’s rice exports have declined by 48% due to the dumping of Indian rice in global markets at cheaper rates.
Indian rice exporters were able to engage in the dumping practice due to governmental subsidies.
This was revealed by the President of the Rice Exporters Association of Pakistan (REAP), Abdul Qayyum Paracha, to a couple of media outlets.
Paracha stated that the main reason for a significant fall in Pakistan’s rice exports was the low price of Indian rice in international markets.
Pakistan has been offering its rice at an average rate of $450 per tonne, while India has been quoting a price of $360 per tonne.
Pakistani rice exporters believe their competitors in India are receiving subsidies from their government, enabling them to engage in dumping.
It is pertinent to note that under the World Trade Organisation (WTO) rules, flooding global markets with subsidized food, particularly rice, is an offense.
Paracha underscored that Pakistan was not the only nation to be affected by Indian rice dumping.
Other South and Southeastern Asian countries, such as Nepal, Myanmar (Burma), Thailand, Vietnam, and Cambodia, have also been affected.
The REAP President also blamed the spiraling of freight charges for the decrease in rice exports.
The Chairperson of the Cereal Association of Pakistan (CEP), Muzammil Rauf Chappal, lamented that freight charges have almost gone up by 600% in recent times, causing a huge loss to traders.
According to the Pakistan Bureau of Statistics (PBS), Pakistan’s basmati exports have declined by 31% during the current fiscal year, resulting in a revenue of $1.8 billion instead of more than $2 billion last year.
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